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Category: News This Week

  • Malawi Faces Oversupply as Tobacco Season Opens

    Malawi Faces Oversupply as Tobacco Season Opens

    Malawi’s 2026 tobacco marketing season has opened with a significant supply-demand imbalance, as production is projected at 197 million kg against buyer demand of just 170 million kg, leaving a surplus of about 27 million kg. Early signs at auction floors point to slow uptake, with less than half of delivered bales initially put up for sale, raising concerns over stock build-up.

    Industry participants say the gap reflects weaker global demand and excess supply, with buyers holding greater leverage and some still carrying unsold inventory from the previous season. Major buyers, including JTI Leaf, Alliance One, and Limbe Leaf, are collectively targeting volumes well below expected output, highlighting a shortage of purchasing capacity.

    The imbalance is expected to put downward pressure on prices and farmer incomes, following a similar pattern last year when oversupply led to price declines. With tobacco remaining a key source of export earnings, officials have urged fair pricing, though market conditions remain driven by the excess supply and limited buyer demand.

  • Illicit Cigarettes Undermine Health Warnings in New Zealand

    Illicit Cigarettes Undermine Health Warnings in New Zealand

    A Radio New Zealand investigation found black market cigarettes widely sold in Auckland without mandated health warnings, often at prices as low as NZ$13 ($7.67) per pack—less than a third of legal products. Under New Zealand law, tobacco packaging must carry graphic health warnings covering at least 75% of the pack, but most illicit products lack these labels, making enforcement more difficult for authorities.

    Public health experts say the absence of warnings and lower prices are undermining efforts to reduce smoking, particularly among low-income groups and young people. Officials note that non-compliant packaging is a key indicator used to identify illegal products, while penalties for violations include fines of up to NZ$600,000 ($354,000) for manufacturers and prison terms or fines for retailers.

  • Dutch Tobacco Revenues Decline Despite Tax Hikes

    Dutch Tobacco Revenues Decline Despite Tax Hikes

    Tobacco excise revenues in the Netherlands fell to €2.55 billion in 2025 from nearly €3 billion a year earlier, despite multiple tax increases, according to Statistics Netherlands. Cigarette excise duties have doubled since 2020, while taxes on smoking tobacco have more than tripled, pushing the minimum price of a pack of cigarettes to €7.81.

    The decline in revenue coincides with falling smoking rates and shifting consumer behavior. The share of smokers dropped from one in four in 2015 to one in six in 2025, while daily smoking also declined. At the same time, more consumers are purchasing tobacco abroad, with cross-border buying rising significantly, and vaping uptake increasing in recent years.

  • Greek Authorities Dismantle €1 Billion Illicit Cigarette Network

    Greek Authorities Dismantle €1 Billion Illicit Cigarette Network

    Greek authorities dismantled a large-scale illegal cigarette production and smuggling network accused of causing €1 billion in losses over eight years. The operation, led by the Hellenic Authority for Combating Money Laundering following a four-month investigation, resulted in the freezing of extensive assets, including 42 properties, a factory used for processing illicit cigarettes, 76 vessels, and dozens of vehicles.

    The case involves 38 individuals and 21 companies, with authorities identifying two alleged ringleaders and several accomplices connected to a broader family network. Investigators said the group used shell companies, fake invoices and false certifications to launder proceeds and conceal the scale of its operations.

  • Tasmania Passes Bill to Strengthen Crackdown on Illicit Tobacco and Vapes

    Tasmania Passes Bill to Strengthen Crackdown on Illicit Tobacco and Vapes

    Tasmania’s House of Assembly passed the Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026, introducing new offences, higher penalties, and expanded powers to shut down businesses involved in the illegal sale of tobacco and vaping products. The legislation targets illicit trade and aims to strengthen enforcement against unauthorized products.

    Health Minister Bridget Archer said the measures are intended to reduce smoking and prevent youth access, while Police Minister Felix Ellis linked the illicit market to organized crime, warning against the spread of related criminal activity. The bill will now move to the Legislative Council for further consideration.

  • OWNiT Panel Talks Women in Law, Tobacco Industry at ATNF

    OWNiT Panel Talks Women in Law, Tobacco Industry at ATNF

    At the American Tobacco and Nicotine Forum (ATNF), the OWNIT panel brought together leading women in the legal side of the tobacco and nicotine industry to discuss career paths, leadership, and their experiences navigating a traditionally male-dominated field. Moderated by Beth Oliva, a partner with Fox Rothschild, the panel featured Stacy Ehrlich, partner with Kleinfeld Kaplan and Becker LLP,  Carole Folmar, a senior director and associate general counsel for ITG Brands, Kym Wellons, co-founder, COO, and general counsel for Sanova, and Angela Ho-Chen, managing counsel at RAI Services, each sharing personal experiences on entering the profession and building careers in a complex regulatory environment.

    Ehrlich said she was drawn to law early on and described the tobacco sector as a “fascinating” area to work in, while emphasizing the importance of maintaining work-life balance and prioritizing wellness. Folmar highlighted the need for persistence and confidence, particularly in encouraging women to speak up in professional settings, noting she has seen progress in female representation in regulatory roles. Wellons reflected on navigating her career as a single parent, stressing the importance of taking risks and embracing change, while also managing expectations and long-term career growth.

    Ho-Chen spoke about the influence of mentors and the importance of stepping outside comfort zones, particularly early in her career, while also addressing the challenges of balancing professional demands with family responsibilities. Across the panel, speakers emphasized mentorship, setting boundaries, and aligning personal and professional priorities, with Oliva noting that sharing these experiences can help drive broader changes in workplace culture and leadership within the industry.

  • ATNF Panel Examines Role of AI in Nicotine Product Innovation

    ATNF Panel Examines Role of AI in Nicotine Product Innovation

    A first-of-its-kind panel at the American Tobacco and Nicotine Forum (ATNF) focused on the role of artificial intelligence in product research and development, with moderator Dr. Stan Gilliland, managing partner for Sapphire Sciences, highlighting the importance of using the right tools in a highly regulated environment. He framed AI as a potential support across the product lifecycle—from identifying unmet needs to designing studies—but stressed that its use must be carefully managed, documented, and validated, particularly given regulatory scrutiny.

    Panelists offered differing views on AI’s role. Dr. Jessica Zdinak, founder and Chief Research Officer for Applied Research and Analysis Company, expressed skepticism, emphasizing the importance of human expertise and warning against overreliance on AI, particularly in areas lacking clear regulatory endpoints. Dr. Ian Jones, behavioral science manager for JTI Liggett, described AI as a support tool that can improve efficiency, data handling, and communication, but said human oversight remains essential to interpret results and ensure scientific integrity. Dr. Elsa Larson, vice president at M/A/R/C Research, said her organization is taking a cautious approach, limiting AI use to lower-risk applications and avoiding regulatory studies for now due to concerns about reliability and oversight.

    Nick Kadysh, founder and CEO for PharmAla Biotech, and Gavin O’Dowd, CEO for Haypp Group, took a more forward-looking stance, with Kadysh saying AI is already essential in areas such as product design and regulatory strategy, particularly as data complexity increases. O’Dowd highlighted the broader technological shift underway, noting that advances in computing power could accelerate the transition toward reduced-risk products if properly harnessed, but emphasized the need for industry-specific tools and human expertise. Across the panel, speakers pointed to ongoing challenges around data quality, transparency, regulatory acceptance, and the balance between efficiency and scientific rigor.

  • ATNF Panel Highlights Innovation Barriers and Regulatory Challenges

    ATNF Panel Highlights Innovation Barriers and Regulatory Challenges

    At the American Tobacco and Nicotine Forum (ATNF) preconference, an innovation-focused panel examined the challenges of bringing reduced-risk nicotine products to market, with moderator Ryan Selby, managing Director for Emerald Innovations Ltd., emphasizing the difficulty of changing consumer behavior despite decades of public health messaging. He noted that while the risks of smoking are well understood, millions continue to smoke, raising questions about whether innovation must be “perfect” or simply “better” to make an impact. Selby also highlighted the stigma surrounding nicotine products, the cost pressures facing innovators, and the difficulty smaller companies face in gaining shelf space and competing with low-cost combustible cigarettes.

    Tadas Lisauskas, president and co-founder of Greenbutts, said U.S. regulations are effectively pushing innovation abroad, with smaller companies unable to navigate the regulatory burden or secure funding without clearer rules. He argued that “capital follows clarity,” and warned that the current system favors large legacy players while limiting new entrants, even as demand for alternative products exists. Dr. Willie McKinney, founder and CEO of McKinney Specialty Labs, focused on the importance of responsible innovation, stressing the role of scientific oversight and toxicology in product development, while noting that inconsistent public messaging and regulatory communication create confusion for consumers.

    Dr. Anna Franzén, clinical and regulatory business development officer at Emplicure Consumer AB, said regulation can support innovation if it is clear and structured, but current frameworks—particularly in the U.S.—are better suited to large companies and hinder smaller innovators. She called for more guidance, pilot programs and engagement with regulators, while pointing to international markets such as Sweden as examples of successful product adoption. Amber Sandrock, Chief of Staff at Shelf Partners, compared nicotine regulation to the food industry, noting that the rigid PMTA process limits the ability to refine products after submission and slows innovation. She also highlighted the need for more flexibility, cost efficiency and support for sustainable product development within the regulatory system.

  • Articles Accuse Makary of Putting Reputation Over Science

    Articles Accuse Makary of Putting Reputation Over Science

    Over the weekend, multiple sources criticized FDA Commissioner Marty Makary for being influenced by reputational considerations rather than evolving evidence on risk and consumer behavior in the regulation of reduced-harm nicotine products. According to The Wall Street Journal, tensions have emerged between the White House and the FDA, with the administration pushing to expand access to flavored vaping products while Makary has blocked authorizations despite internal scientific support. The report cited a case involving vape company Glas, where FDA scientists recommended approval of several flavors, but a memo from Makary’s office delayed the decision, highlighting a divergence between scientific review and agency leadership.

    Separately, Brownstone Institute published an article by Roger Bate arguing that regulatory progress on reduced-risk nicotine products has stalled despite declining youth vaping rates and evidence supporting harm reduction. Bate wrote that approvals for products such as vapes and nicotine pouches have slowed significantly, and wrote that “reputable sources” attributed this in part to Makary’s reluctance to act, citing concerns within the agency that decisions are being shaped by reputational risk rather than scientific data.

  • Cyprus Compromise May Solve EU Tobacco Impasse

    Cyprus Compromise May Solve EU Tobacco Impasse

    International Policy Digest is reporting that a new compromise proposal from Cyprus may help break the long-standing deadlock among EU member states over revising the Tobacco Excise Directive, which has not been updated since 2011. The European Commission’s 2025 proposal sought to raise minimum excise duties and extend taxation to newer products such as heated tobacco and nicotine pouches, but faced strong opposition from several countries concerned about market disruption and illicit trade.

    The Cyprus proposal retains higher taxes and broader product coverage but introduces a more gradual approach, including transition periods for implementation and limits on automatic inflation-linked increases. It also offers more flexibility for member states in applying taxes to newer nicotine products, addressing key concerns raised in earlier negotiations that stalled progress.

    Initial reactions from EU governments suggest cautious support for the revised approach, though unanimous agreement from all 27 member states remains required. The outcome is time-sensitive, as failure to reach a deal during Cyprus’s presidency could shift negotiations to Ireland, where officials are expected to push for stricter tax measures.